The AMWA is calculated by:

• Total of all required payroll deduction remittances in a calendar year
• ÷divideded by Number of months (maximum 12) that required a payroll deduction remittance in that calendar year
• =eqauls Average monthly withholding amount (AMWA)

A new employer is an employer whose payroll account has been open for less than 12 months. You do not have to apply. Remit quarterly unless the CRA tells you, on your statement of account, that you have to remit at a different frequency.

New employers are eligible to be a quarterly remitter if they meet both of the following conditions:

• The monthly withholding amount (MWA) is less than $1,000 What is the "monthly withholding amount (MWA)"

  The monthly withholding amount (MWA) is the total of all required remittances in one calendar month.

• A perfect compliance record is maintained on all payroll and GST/HST accounts

A new employer who no longer qualifies to be a quarterly remitter will be considered a regular remitter in the next calendar quarter.

Example – MWA condition is not met

Zach's Auto Repairs has a MWA of $500 for January, $1,500 for February, and $1,500 for March. The employer's quarterly remittance of $3,500 is due by April 15.

Since the MWA for February and March was $1,000 or more, the employer will be considered a regular remitter as of the beginning of the second calendar quarter. The employer will have to remit monthly beginning with their MWA for the month of April, which is due by May 15.

Perfect compliance record

Quarterly remitters must meet all of the following conditions over the previous 12 months to maintain a perfect compliance record in their payroll and GST/HST accounts:

• The payroll account must have:
  • No late remittances or late remitting penalties
  • No failure to remit penalties
  • No failure to deduct penalties
  • No overdue T4-type information return(s)
• If the employer has a GST/HST account, it must have:
  • No balance owing
  • No overdue returns
  • No credit balance with a refund hold

Example – Perfect compliance record condition is not met

ABC Construction has a MWA of $500 for each of the months January, February and March. Where April 15 is not a holiday and the employer remits their quarterly remittance of $1,500 after April 15, the remittance is considered late.

Since the failure happened in April, ABC Construction may make their quarterly remittance for April, May and June by July 15. However, the company will have to remit monthly beginning with their MWA for the month of July, which is due by August 15.

An existing employer is an employer whose payroll account has been opened for at least 12 months (if the employer has multiple payroll accounts, at least one must have been open for at least 12 months).

Existing employers are eligible to remit quarterly if they meet all of the following conditions:

• They have a payroll account that has been open for at least 12 months
• The AMWA in the calendar year before the previous calendar year was less than $3,000
• A perfect compliance record is maintained on all payroll and GST/HST accounts over the previous 12-month period

Existing employers who qualify to be quarterly remitters are notified in writing.

Existing employers who no longer qualify as quarterly remitters will be assigned a new remitter type for the following calendar year.

Perfect compliance record

Quarterly remitters must meet all of the following conditions over the previous 12 months to maintain a perfect compliance record in their payroll and GST/HST accounts:

• The payroll account must have:
  • No late remittances or late remitting penalties
  • No failure to remit penalties
  • No failure to deduct penalties
  • No overdue T4-type information return(s)
• If the employer has a GST/HST account, it must have:
  • No balance owing
  • No overdue returns
  • No credit balance with a refund hold

Existing employers who meet all of the following conditions are regular remitters:

• The AMWA in the calendar year before the previous calendar year was less than $25,000
• The CRA has not assigned another remitter type
• You are a new employer, but do not qualify to remit quarterly as a new small employer

Existing employers who meet both of the following conditions are Threshold 1 accelerated remitters:

• The AMWA in the calendar year before the previous calendar year was at least $25,000 but not more than $99,999.99
• The CRA did not assign another remitter type

Existing employers who meet both of the following conditions are Threshold 2 accelerated remitters:

• The AMWA in the calendar year before the previous calendar year was at least $100,000
• The CRA did not assign another remitter type